A social investment scheme which provides new homes for those who find it difficult to join the housing market, by getting them to build or renovate a property in return for financial support, has raised £500,000 of private investment in the first five days since its launch.

Equfund created the investment scheme, the Loanstock, in partnership with the charity Liverpool Habitat for Humanity, who has been running the housing project for five years and had built 9 properties, but hit difficulty when funding dried up. Equfund got involved as it promotes community self-build projects.

Equfund wants create at least 23 new homes in Toxteth, Merseyside through raising a minimum of £1.5m investment. 500 hours of work on the property will earn those assisted by the scheme 10 per cent of the finished property’s value as a deposit, allowing easier access to mortgage finance, as well as trade skills and experience.

Further, Equfund will offer a dual financing arrangement where a person will be able to take out a low-rate mortgage, with a high-street lender of up to 75 per cent of the purchase price, and an interest-free, shared-equity loan, with Equfund for the remaining purchase balance over a five year term.

The Loanstock issue has a minimum investment level per individual of £1,000, with a maximum permitted amount of £250,000, and a closing date of 30th September 2011. Investors are able to select the term of their investment, from two to five years, and a fixed level of interest, from 0 per cent to 5 per cent, payable gross at the maturity date.

Despite the economic climate, many of Equfund’s past investors have chosen a lower percentage rate in order for their capital to achieve a greater social impact.

Andrew Mahon, director at Equfund commented: “The investments we have already seen have been a broad mix – from regular investors to first time investors looking for a way to make a difference, whilst earning more interest than their bank can offer.”

“We often receive investment from individuals who, in addition to receiving financial returns, want to see community benefits and also from businesses who, in addition to underpinning their CSR commitments, like to support targeted investments. Our offering meets both these agenda.”

Equfund (IPS) Limited is an Industrial & Provident Society operating for the benefit of the community. From its base in West Kirby, Merseyside, it has been involved in funding regeneration and refurbishments projects across the country for the past ten years. To date, it has assisted in the bringing back of over 1,000 empty homes into habitable use.